Both companies have signed MOU to distribute schemes in their respective nations.
Reliance Capital Asset Management has signed a memorandum of understanding (MOU) with Korea based Samsung Asset Management to exchange expertise and explore areas for developing, managing, marketing and distributing each other’s schemes in India and Korea.
Samsung Asset Management is the largest asset management firm in Korea managing assets of over US$ 165.8 billion (as of February 2015). The company has over 51 per cent market share in ETFs across 16 ETF managers in Korea (as of August 2014), says a press release issued by Reliance Capital Asset.
The agreement was signed between Mr. Sundeep Sikka, CEO, Reliance Capital Asset Management and Dr. Sung Hoon Koo, CEO, Samsung Asset Management in Seoul, South Korea.
Both companies will seek to develop and explore business opportunities in active and passive strategies, leveraging upon their specific investment and distribution reach, in India and Korea
In the press release, the company said, “We are delighted to begin our business relationship with Samsung Asset Management, the leader in asset management space in Korea. We are confident that this relationship between two leading asset management companies will provide both Korean and Indian investors, seeking exposure in global equities, with enhanced investment opportunities and significant diversification benefits”
In recent years, Reliance Capital Asset Management has been expanding its offshore capabilities and has managed and advised assets of over USD$1.5 billion.
“Indian asset management market has grown by around 12 per cent per annum since 2008 to US$ 190 billion and offers tremendous potential to overseas investors. Samsung’s leadership experience in Korea, with over 51 per cent market share in ETFs, and our complementary expertise in investment strategies will help us expand the market for Indian funds globally,” said Sikka.
